Latest news with #APTMA
Business Recorder
4 days ago
- Business
- Business Recorder
Tax-related issues facing APTMA will be resolved, CC LTO Lahore tells office-bearers
LAHORE: Sajjad Tasleem Azam, Chief Commissioner Large Tax Office (LTO) Lahore, has assured APTMA members of solving tax related issues of the textile industry on priority including Sales tax and Income tax refunds, deferred refund claims, adjustment of pending refunds against liabilities and prompt issuance of exemption certificates. He was speaking to APTMA members during his visit to APTMA on Tuesday. He was accompanied by Khaliq Farooq Mian, Commissioner LTO Lahore. Chairman APTMA Kamran Arshad, Chairman North Asad Shafi, Haroon Ellahi, Muhammad Ali, Sufiyan Akhtar senior Executives, and Secretary General Raza Baqir welcomed tax functionaries on their visit to APTMA. Office-bearers and leading members of Chainstore Association of Pakistan (CAP), including Rana Tariq Mehboob Patron-in-Chief CAP, Ahsan Mehmood Senior Vice Chairman CAP, Wasif Sikander of Maria B, top exporters and retailers were also present on the occasion. The Chief Commissioner LTO said the Federal Board of Revenue (FBR) has established LTOs to address the issues of large taxpayers while acknowledging their role in revenue generation. He appreciated APTMA's role in export and employment enhancement. He said FBR has paid refunds of billions of rupees during the current year, including deferred claims despite facing shortfall in tax targets. He sought a list of APTMA members who were not able to receive refunds so far for expeditious processing of their claims. Replying to the suggestion that the LTO should allow tax adjustment against refund claims, he said that FBR is already processing inter-tax adjustments to facilitate the taxpayers. Chief Commissioner promised to address the problem of shortage of staff to attend tax related issues of exporters. He also sought proposals to improve sales tax refund system. He appreciated the role of chain stores in the economy of Pakistan and providing par excellence service to their customers which is not in any case less than the service provided in the best malls all around the globe. He lauded that tier-I Retailers are all tax compliant and duly integrated with FBR-POS system since 2018 which should encourage others retailers also to integrate with FBR. Earlier, speaking on the occasion, Chairman APTMA Kamran Arshad said tax refunds of a large number of taxpayers are pending with the LTO, causing financial crunch for already crisis-driven textile industry and requested for their immediate disposal to provide financial relief to exporters. Kamran pointed out that a huge amount of sales tax claims are deferred by the FASTER system, which require normal processing by the tax authorities. These deferred claims are needed to be processed immediately as funds worth millions of rupees of every member mill are stuck up, he added. He urged the visiting Chief Commissioner to set up a dedicated cell for processing of all deferred cases with the direction of no pendency for more than one month. In case of staff shortage, he proposed that at least 80 percent of the claimed amount may be sanctioned provisionally to the corporate sector against undertaking. Copyright Business Recorder, 2025
Business Recorder
12-06-2025
- Business
- Business Recorder
APTMA, US CG discuss ways to foster bilateral trade
LAHORE: Kristin K Hawkins, United States Consul General in Lahore, and All Pakistan Textile Mills Association (APTMA) office-bearers discussed ways to foster bilateral trade and economic relations between Pakistan and the United States of America. Kamran Arshad, Chairman APTMA, Asad Shafi, Chairman North, Ahmad Shafi, Vice Chairman, Mohammad Qasim, Treasurer, Haroon Ellahi, senior Executive, former Chairman Ali Ahsan, and Secretary General Raza Baqir along with senior members of APTMA representing leading textile groups welcomed Kristin Hawkins, William Campbell, Economic Chief and Amna Anis Economic Specialist. They discussed the enormous potential to work together in the field of cotton and textile besides expanding trade and investment relations in other focused areas reducing trade deficit and diversifying major commodities of trade between both countries in the wake of US reciprocal tariffs. Both sides were of the view that Pakistan has strong potential to grow in textile and other sectors. APTMA leadership continued to focus on engagements and dialogue with their American counterparts to uplift trade volume and to gain maximum benefit of economic partnership between both the countries. Speaking on the occasion, Kamran Arshad made a detailed presentation on textile industry of Pakistan. He pointed out that Pakistan's domestic cotton production has declined over the years and even this year huge quantity of cotton would be required to be imported due to poor cotton crop. He said the major supplier of cotton to Pakistan is the USA. Pakistan is the largest importer of US cotton in the world. He added that the import of US cotton compensate loss in production of local cotton. According to Kamran, the availability of cotton and other inputs is essential for economy of the country as textile constitutes 62% of total exports from Pakistan. Kamran Arshad highlighted issues being faced by textile industry including withdrawal of Regionally Competitive Energy Tariff for both electricity and gas. He specifically mentioned discriminatory tax treatment for local supplies and import of inputs under Export Facilitation Scheme (EFS) which allows tax-free import of raw materials but levies sales tax @ 18% on procurement of locally produced goods. This discrimination has forced closure of 120 spinning mills and more than 800 ginning factories, increasing import of yarn from $340 million last year to $800 million this year. Kamran emphasised for restoration of even playing field both for imports and local supplies under EFS to ensure continuous operations of textile industry as any shut down of textile sector would render millions as jobless, creating catastrophic situation endangering survival of the country. He stressed on evolving a mechanism to import US cotton under GSM-102 against export of textile products to the US. He added that proceeds of Pakistan textile export to the US may be used as collateral through the mechanism of an escrow account whereby this liability is deducted from the export proceeds of Pakistan textile import into the US. Speaking about the strength of the textile industry in Pakistan and further expansion of bilateral trade between the US and Pakistan, Asad Shafi, Chairman North said that the US is Pakistan's largest trading partner with a total bilateral trade of $9.85 billion in 2024. According to him, total exports of Pakistan to the US stood at $5.12 billion out of which $3.93 billion or 77% were textile and apparel. As against this, Pakistan imported $2.14 billion goods from the US in 2024 of which cotton imports were more than $700 million. Asad stressed upon promotion of US cotton linkages with Pakistan textile industry, as well as, promotion of toll manufacturing in Pakistan by US textile industry. He said there is a need for technology transfer to Pakistan for high yielding cotton seed and synergies with US cotton research institutes for better quality. He also sought capacity building of agricultural research institutions in Pakistan and technology transfer for cotton traceability. Asad said that the United States should facilitate entry of international seed companies with transgenic technologies besides introduction of improved, genetically modified, and certified seed. He also spoke on the importance of establishing joint ventures between Pakistan and US investors. Meanwhile, speaker of the Punjab Assembly, Malik Muhammad Ahmad Khan, met with the United States Chargé d'Affaires, Natalie A. Baker, and US Consul General Kristin Hawkins, at the Punjab Assembly. The Speaker warmly welcomed the distinguished guests and termed their visit to the Assembly as a positive step towards strengthening institutional ties. On this occasion, Malik Muhammad Ahmad appreciated Natalie Baker's constructive and dynamic role in Pakistan, stating that Pakistan–US relations are based on mutual trust and a valued strategic partnership. He emphasized that the United States' proactive and constructive role in ensuring peace in South Asia is of utmost importance. The meeting included detailed discussions on Pakistan–US relations, regional peace, climate change, food security, educational collaboration, and cooperation in other vital sectors. The Speaker expressed a desire to further deepen ties between Punjab and the US state of California, noting that the Pakistani-American community continues to serve as a robust bridge between the two nations. He further remarked that Pakistan views the United States as a key global partner in addressing climate change, development, and food security, and wishes to expand this strategic cooperation even further. Natalie Baker affirmed that the United States aims to further strengthen diplomatic engagement with Pakistan and will continue to support democratic institutions and parliamentary exchanges. Kristin Hawkins expressed her intent to enhance collaboration in the fields of education and social development. The meeting was also attended by Member Provincial Assembly Iftikhar Chachar, Secretary General of the Punjab Assembly Chaudhry Amer Habib, Principal Secretary to the Speaker Imad Hussain Bhalli, and Malik Taimoor Ahmad Khan. Copyright Business Recorder, 2025
Business Recorder
12-06-2025
- Business
- Business Recorder
Imported cotton yarn: APTMA hails 18pc sales tax imposition
ISLAMABAD: The All Pakistan Textile Mills Association (APTMA) has appreciated imposing 18 percent sales tax on imported cotton yarn by the government. According to the Association, the budget addressed a major distortion in the market and is a significant step toward resolving the sales tax anomaly in the Export Facilitation Scheme (EFS). It demonstrates the government's commitment to restoring fairness and balance in the domestic textile value chain, and commended this decisive action. However, this correction—while welcomed—is insufficient in scope. After having dealt a severe blow to the spinning sector, the sales tax disparity is now eroding the viability of downstream sectors like weaving. EFS, under which imported inputs for export enjoy a zero percent sales tax rate while local materials for export are taxed at 18 percent, continues to place upstream domestic sectors at a gross disadvantage. Local cotton: Pakistan govt working to abolish 18% GST, says minister Chairman APTMA, Kamran Arshad, in a statement stated that to ensure true competitiveness and sustainability of Pakistan's textile value chain, APTMA strongly urges the government to extend the 18 percent sales tax to all yarns and fabrics, whether cotton or polyester, imported under EFS. Moreover, these imports must be placed on the EFS Negative List, imposing a 5 percent customs duty on yarn and 11 percent on fabric to establish a level playing field and incentivize local manufacturing. Without this, the gains made in one segment will be undone by distortions in another. He said the situation with poly-cotton and polyester yarns is particularly concerning, as they are already approximately 35 percent more expensive to produce domestically. Subjecting local manufacturers to 18 percent sales tax while exempting imported polyester inputs undermines industrial policy objectives and discourages investment in local capacity. APTMA also reiterated its demand for the removal of sales tax on cottonseed and cottonseed cake —by-products of cotton lint- used primarily in livestock feed. These items are not subject to sales tax in any major cotton-producing economy. Imposing 18 percent GST on these products pushes farmers below their cost of production, especially given the price inelasticity of demand, and drives a damaging shift toward more water-intensive crops. This not only imperils water security but also fuels underreporting of cotton production, thereby reducing revenue collection on cotton lint itself. 'We are grateful for the government's attention and responsiveness to industry concerns thus far. However, without extending similar GST treatment to all EFS imports of yarns and fabrics, the crisis faced by spinning will soon replicate in weaving. Yarn feeds into fabric production, and if locally produced fabric is taxed while imported fabric is not, exporters will inevitably choose the cheaper, untaxed import—undermining both the fabric and yarn sectors,' he added. APTMA has urged the government to adopt a comprehensive, value-chain-wide perspective. Partial reforms are insufficient. The core anomaly remains: imported inputs for export are exempted while local inputs are taxed. This policy penalizes domestic value addition, stifles backward linkages, and impedes the very foundation of an export-led growth strategy. Efforts to integrate into global value chains should continue, but not at the expense of domestic industry, employment, and investment. 'APTMA deeply appreciates the government's broader economic reform agenda, which has yielded substantial relief and renewed confidence across the industrial landscape. The reduction in power tariffs from an unsustainable 16–17 cents/kWh to approximately 11 cents/kWh, the successful curbing of back-breaking inflation, and the lowering of interest rates from 22 percent to 11 percent are commendable achievements,' Arshad continued. The Association further stated that these efforts have laid the groundwork for economic stabilization and set the stage for sustainable recovery. To translate this momentum into broad-based industrial growth and export expansion, it is imperative that remaining issues—such as the EFS-related tax anomalies—are addressed comprehensively. With these distortions resolved, the textile value chain can regain its full competitiveness, unlocking investment, job creation, and foreign exchange earnings for Pakistan. Copyright Business Recorder, 2025
Business Recorder
05-06-2025
- Business
- Business Recorder
Textile bodies demand continuation of original EFS
KARACHI: The Value-Added Textile Associations Forum, representing various apparel and textile bodies, jointly held a press conference on Wednesday, demanding the continuation of the Export Facilitation Scheme (EFS) in its original form as introduced in 2021, without any amendments made in the Federal Budget 2024-2025. The presser held at PHMA House with leaders of different textile associations strongly opposing the imposition of Sales Tax at the import stage under the scheme, warning it would undermine the purpose of facilitating exporters. The forum called on the Government of Pakistan to continue the scheme under section 880(1)(b) of SRO 957(I)/2021, which allows local input goods liable to sales tax to be supplied against zero-rated invoices. This provision, they said, ensures liquidity, competitiveness, and formalization across the export-oriented industry value chain. 'EFS is inevitable and a lifeline for enhancing national exports,' the associations declared in a unified voice. They urged the reinstatement of local procurement under the scheme to support the entire textile value chain, enabling a level playing field and a win-win for all stakeholders. Export Facilitation Scheme be retained in FY26 budget They explained that the scheme was launched in 2021 after wide consultation with stakeholders to simplify and streamline export procedures. EFS merged all previous schemes into one, reduced documentation requirements, and introduced a single-window digital system through WeBOC and Pakistan Single Window (PSW). The fully automated system includes real-time audits and helps regulate compliance costs. According to the forum, since its inception, the EFS has played a crucial role in easing liquidity pressures and supporting exporters' competitiveness. The press conference was addressed by leaders including Jawed Bilwani (Chief Coordinator, Value-Added Apparel & Textile Associations Forum), Muhammad Babar Khan (Central Chairman, Pakistan Hosiery Manufacturers & Exporters Association), Ijaz Khokhar (Former Chairman, Pakistan Readymade Garments Manufacturers & Exporters Association), Rafiq Godil (Former Chairman, Pakistan Knitwear & Sweater Exporters Association), Farooq Rahman Dittu (Pakistan Cotton Fashion Apparel Exporters Association), Ather Bari (Chairman, Towel Manufacturers Association), Irfan Merchant (Chairman, Denim Manufacturers & Exporters Association), Khurram Mukhtar (Former Chairman, Pakistan Textile Exporters Association), Hamid Arshad Zahur (Chairman, Pakistan Tanners Association), and other representatives from major exporting cities including Karachi, Lahore, Faisalabad, and Sialkot. Jawed Bilwani stressed that EFS has been critical in supporting not only textiles but other export sectors as well. He pointed out that all associations, including APTMA, initially welcomed EFS. In an Inter-Ministerial Committee chaired by Planning Minister Ahsan Iqbal, APTMA representatives agreed that the scheme should continue in its original form. However, APTMA later parted ways and demanded the imposition of Sales Tax at the import stage under EFS—a move that Value-Added Associations rejected strongly. He warned that imposing Sales Tax at the import stage would defeat the very objective of EFS, causing severe liquidity issues and harming exporters' competitiveness. Bilwani also revealed that APTMA, in the same committee meeting, admitted their yarn quality—produced from contaminated local cotton—is not on par with imported yarn. He stated that even the top 100 textile exporters, including composite units under APTMA, support the continuation of EFS in its original form with local procurement allowed on zero-rated invoices. He added that the upcoming federal budget should also include the reinstatement of Regionally Competitive Energy Tariffs and Final Tax Regime (FTR) to ensure financial viability and export growth. Speaking at the press conference, PHMA Central Chairman Muhammad Babar Khan rejected APTMA's 'misleading' demand to impose Sales Tax at the import stage under EFS. He said that spinning is only a sub-sector of the textile industry, while the value-added sector remains committed to supporting the entire value chain. He urged the Government to create policies that benefit all textile sub-sectors equally, from garments to spinning and ginning. Babar Khan highlighted that rising manufacturing costs have hurt all textile sectors. The apparel and garment sector contributes the highest value addition, up to 70 percent, and needs EFS to remain unchanged to stay competitive. He questioned why APTMA, after supporting EFS from 2021 to February 2025, has suddenly changed its stance. He urged APTMA to drop their unjustified demand for Sales Tax at import-stage and return to supporting the reinstatement of local procurement in the scheme. Babar Khan recalled the key strengths of EFS: a strategic and fully automated system built with input from all textile associations to reduce compliance burdens and simplify export operations. The scheme offers end-to-end traceability and operates in a fully digital environment through WeBOC and PSW. The association leaders agreed that countries like Bangladesh and Vietnam also rely heavily on imported raw materials to manufacture export garments. Their governments offer facilitation schemes similar to EFS, making it crucial for Pakistan to maintain parity. They stated that collecting Sales Tax from exports only to refund it later serves no real purpose and often leads to long refund delays, further straining exporters' liquidity. They emphasized that EFS should remain unchanged and that the FBR should focus on expanding the tax base instead of burdening existing exporters. Exporters' Sales Tax refunds have already been delayed for months, and adding more taxes will only increase their hardships. The associations repeated their firm demand to continue EFS in its original form as of 2021—before the 2024-2025 Federal Budget—with local procurement allowed under section 880(1)(b) of SRO 957(I)/2021, which permits local input goods subject to Sales Tax to be supplied against zero-rated invoices. This, they said, is necessary to ensure liquidity, competitiveness, and formalization of the export value chain. The continuation of EFS in its original form has also been recommended by the Inter-Ministerial Committee chaired by the Federal Planning Minister, under the Prime Minister's direction. Other PHMA representatives present at the event included Former Chairmen Chaudhry Salamat Ali, Farrukh Iqbal, Kashif Zia, Sr. Vice Chairman Hazir Khan (Faisalabad), Former Chairman Shahzad Azam Khan and Zonal Chairman Abdul Hameed (Lahore), Tariq Bhatti and Khawaja Musharraf (Sialkot), PRGMEA Northern Zone Representatives Sohail Afzal and Ayazuddin, and numerous top exporters from Karachi, Lahore, Faisalabad, and Sialkot. Copyright Business Recorder, 2025
Business Recorder
05-06-2025
- Business
- Business Recorder
‘ST imposition under EFS will sabotage export industry'
FAISALABAD: Addressing at a press conference, Senior Vice Chairman of the Pakistan Hosiery Manufacturers & Exporters Association (PHMA), Hazar Khan, warned that the imposition of sales tax at the import stage under the Export Facilitation Scheme (EFS) will sabotage the export industry. He cautioned that the government's move to impose sales tax at the import stage within the EFS framework would be another severe blow to apparel and textile exporters, who are already under immense financial pressure. He emphasised that the collection and refund process of sales tax is not only inefficient but also provides opportunities for corruption through fake refunds, while genuine exporters face long delays in getting their refunds. The value-added textile sector strongly believes that the EFS should be continued in its original form as it existed prior to Budget 2024-25, to ensure liquidity and transparency in the value chain. This stance is also supported by the inter-ministerial committee, led by the federal minister for Planning, under the directives of the prime minister. Chaudhry Salamat Ali, Group Leader of PHMA, stated that the EFS was developed through consultation with stakeholders and has streamlined, digitised, and improved the efficiency of the export process. Fully automated under WeBOC and PSW systems, the scheme has provided financial relief to exporters. He highlighted that APTMA is using outdated machinery with poor quality and high costs, while value-added garment production requires yarn that meets international standards. The government allowed yarn imports under EFS, which is a key reason for the increase in exports. Arif Ihsan Malik, former Chairman of APBUMA, mentioned that duty-free yarn imports have long been allowed under various SROs, similar to policies followed by Bangladesh, Vietnam, and other countries. He refuted APTMA's claim that 100 of their mills have shut down, calling it baseless and demanding that they share accurate data with the media. He also advocated for allowing commercial importers to bring in yarn under EFS so that small and medium-sized exporters can benefit as well. Mian Kashif Zia, former chairman of PHMA, said that the apparel industries in Bangladesh and Vietnam also rely on imported raw materials and their governments run similar facilitation schemes. Imposing sales tax under EFS would defeat its core purpose. Mian Farrukh Iqbal, former Chairman of PHMA, stated that the government has set a $60 billion export target under the 'Uraan' programme, which will be at risk if the EFS is withdrawn. He further claimed that APTMA produces substandard yarn which fails to meet international expectations, thus compromising the quality of garments made from it. Copyright Business Recorder, 2025
